Why Conn's (CONN) Shares Are Falling Today

Conn's Inc (NASDAQ: CONN) reported a second-quarter FY23 sales decline of 17.1% year-on-year to $346.6 million, missing the consensus of $370.23 million.
Same-store sales decreased 22.0% versus last year.
Adjusted EPS of $0.04 missed the consensus of $0.09.
eCommerce sales rose 11.5% Y/Y to $19.3 million. Retail segment revenues decreased 19.4%, and the Credit segment revenues declined 6.4%.
The costs and expenses for the quarter fell 7% Y/Y to $338.6 million.
The operating margin was 2.3%, and operating income for the quarter plunged 85.2% to $8 million.
The company held $72.1 million in cash and equivalents as of July 31, 2022.
"Challenging macroeconomic conditions continued to pressure consumer spending during our second quarter, which disproportionately affected year-over-year sales to our financial access customer segment and sales of our discretionary product categories," said CEO Chandra Holt.
CONN expects current strategic initiatives, combined with prior actions, to generate cost savings of approximately $12.0 - $16.0 million in the back half of this fiscal year.
Price Action: CONN shares traded lower by 11.49% at $10.01 in premarket on the last check Tuesday.

Conn's Q2 Earnings Miss Estimates Pressured By Economic Uncertainties